5 - Empirical Methods & Evaluation Flashcards
Average treatment effect & Selection Bias
Identifying assumptions
Approaches to remove selection bias
Randomised experiments
Potential problems of running experiments
1) Randomised bias
2) Supply side changes
3) Attrition bias
4) “Hawthorne” effects
5) Contamination bias
Randomization bias
Supply side changes
Attrition Bias
“Hawthorne” effects
Contamination bias
Substitution bias
Externalities & general equilibrium effects
Identifying assumptions in DD models
Usual Problems with DD and Natural Experiments
Instrumental variation: identifying assumption and limitation
Regression discontinuity
Regression discontinuity identifying assumptions
**(MT PS5)
**Potential problems of randomised experiments and solutions
(MT PS5)
**Effectiveness of policy in practice
(MT PS5)
**Natural experiment
(MT PS5)
**Card and Krueger:
Explain the diff-in-diff experiment
(Lecture and MT PS5)
**Specify the treatment and control group. Write down the empirical method model in Card and Krueger (1994) and also the econometric regression.
(MT PS5 2b)
**What is the coeffcient that identifying the effect of the minimum wage increase on employment?
What is the identifying assumption?
(MT PS5)
Regression discontinuity assumptions and interpretation
Based on Graph 1, explain why and how this evidence can be interpreted in the light of a Regression Discontinuity Design.
Explain what assumptions are needed to identify the treatment eect of job training programs in this setting
(MT PS5)
RDD Validity
1) Using Graph 2, explain why you have doubts about the robustness of the treatment eect estimates of the economist,
2) Why the RDD validity can be called into question here.
3) What additional graph would you produce to confirm your doubts about the validity of the RDD setting?
(MT PS5)
